The frog-themed meme coin PEPE is gaining momentum, trading at $0.00002203 after a 6.01% surge in the past 24 hours, driven by bullish patterns and increased investor interest. With a market cap of $9.28 billion and a 24-hour trading volume of $5.56 billion, the token’s volume-to-market cap ratio of 59.36% highlights strong liquidity.
Over the past month, the cryptocurrency has exhibited consistent upward momentum, surging by 166%. With this positive market outlook, the fully circulated token is poised for a possible 27% rally as investor confidence grows. Could this be PEPE’s breakout moment?
PEPE Bullish Patterns Explained
PEPE’s technical analysis highlights two bullish patterns driving its price momentum: a pennant flag and an inverse head-and-shoulders. The pennant flag, a continuation pattern, forms after a sharp rally as prices consolidate within converging trendlines, signaling the prospect for further gains.
This pattern projects a target of $0.000028119, representing a 27.27% increase from the current price of $0.00002203, supported by the 1.618 Fibonacci extension level. Complementing this bullish outlook is the inverse head-and-shoulders pattern on the 4-hour chart, which indicates a reversal from bearish to bullish trends.
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It features three troughs, with the middle (the “head”) being the lowest, flanked by two higher troughs (the “shoulders”). With the PEPE token now trading near the neckline resistance at $0.00002203, a breakout above the 78.6% Fibonacci retracement level of $0.00002341 could serve as a critical confirmation for the next leg up. Together, these patterns suggest a strong bullish possibility for PEPE as market momentum builds.
Positive Net Inflows Support PEPE’s Growth
According to CoinGlass, PEPE’s net flow data further underscores its strengthening bullish momentum. On December 5, 2024, the net inflow reached $19.82 million, indicating decisive investor accumulation. This aligns with the favorable price movement, as the cryptocurrency trades at $0.00002227, continuing its upward trajectory.
From a broader viewpoint, CoinGlass data reveals that PEPE’s spot inflows totaled $453.95 million, while outflows were slightly lower at $434.13 million, resulting in a positive net flow. This trend suggests heightened demand, with more funds entering the market to acquire the cryptocurrency. Such sustained inflows reflect increasing investor confidence, reinforcing the potential for the projected 27% rally.
Technical Indicators Support PEPE’s Bullish Case
From a technical perspective, the token’s RSI, currently at 63.92, is trending near the overbought region but still leaves room for upward movement. This suggests growing buying pressure, aligning with the cryptocurrency’s price breakout attempt.
Additionally, the DMI index provides further clarity on market momentum. The +DI at 24.8557 indicates strong buying interest, while the -DI at 10.66 reflects reduced selling pressure. The ADX, sitting at 38.2933, suggests a strengthening trend that could support a price surge.
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